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5000 - Statements of Policy
{{4-30-85 p.5221}}
EQUAL CREDIT OPPORTUNITY AND FAIR HOUSING ACTS
ENFORCEMENT
POLICY STATEMENT
The objective of this enforcement policy statement is to ensure that
the rights of credit applicants are protected by requiring creditors to
take corrective action for certain, more serious past violations of the
Equal Credit Opportunity and
Fair Housing Acts as well as
to be in compliance in the future. In an effort to achieve that
objective, the agencies will encourage voluntary correction and
compliance with the Acts. Whenever violations addressed by this policy
statement are discovered, the creditor will be required to take action
to ensure that such violations will not recur and to correct the
effects of violations discovered.
The agencies will generally require the creditor to take action to
correct conditions resulting from violations occurring within 24 months
prior to the discovery of violations by an agency, except for
violations concerning adverse action notices for which corrective
action will be required for violations occurring within six months
prior to discovery.
Violations in the following areas are considered serious by the
agencies and will usually be subject to retrospective corrective
action:
• Discouraging applicants on a prohibited basis in violation of
the Fair Housing Act or
§ 202.4 or
§ 202.5(a) of Regulation
B. 1
• Using credit criteria in a discriminatory manner in
evaluating applications in violation of the Fair Housing Act or
§§ 202.4 through 202.7 of Regulation B.
• Imposing different terms on a prohibited basis in violation
of the Fair Housing Act or § 202.4 or
§ 202.6(b) of Regulation B.
• Requiring cosigners, guarantors or the like on a prohibited
basis in violation of
§ 202.7(d) of Regulation B.
• Failing to furnish separate credit histories as required by
§ 202.10 of Regulation B.
• Failing to provide an adequate notice of adverse action under
§ 202.9 of Regulation B.
This policy statement will neither preclude the use of any
administrative authority that any of the agencies possess to enforce
these laws, nor limit the agencies' discretion to take other action to
correct conditions resulting from violations of these laws, nor
preclude referral of cases to the Attorney General. Additionally, this
policy statement does not foreclose a credit applicant's right to bring
civil action under Equal Credit Opportunity or Fair Housing Acts or to
file a complaint with the Department of Justice or the Department of
Housing and Urban Development for violations of housing laws. Further,
this policy statement does not supersede or substitute for any
regulations or enforcement policies issued by any of the agencies or
the Department of Housing and Urban Development under the Fair Housing
Act.
By order of the Federal Financial Institutions Examination Council,
November 6, 1981.
[Source: 46 Fed. Reg. 56500, November 17, 1981]
[The page following this is 5225.]
1 Regulation B (12 CFR 202) of the Federal Reserve Board
implements the Equal Credit Opportunity Act pursuant to section 703(a)
of the Act. Go Back to Text
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